More trouble in the Auto Sector
From the ABC news website, http://www.abcnews.go.com/Business/IndustryInfo/story?id=2685467&page=2.
Ford Motor Company has announced that 38,000 unionized auto workers have accepted buy-back offers from the company. This comes as an upset to the once proud auto company.
Slumping sales and a decreasing market share have caused many financial problems for the company.
While these buybacks are expected to save the company $5 billion by 2008, Ford faces many obstacles. Eliminating employees will only serve to reduce costs, but what the company needs most is revenues from selling cars.
Swaying to consumer demand, Ford plans to redesign its automobiles. Revisions include new hybrid automobiles and cars marketed specifically towards women.
I think its amazing how the complacency the large automakers have had with the market place. Trouble has been brewing for a while since the introduction of Japanese and European companies, which offer stylish, reliable, and efficient cars. Once thinking that their automobiles will be bought regardless, the three largest automakers are finally shedding the mentality of the 1970’s to invest in new technologies, styling, and ideas.
Hopefully they will not look back
Ford Motor Company has announced that 38,000 unionized auto workers have accepted buy-back offers from the company. This comes as an upset to the once proud auto company.
Slumping sales and a decreasing market share have caused many financial problems for the company.
While these buybacks are expected to save the company $5 billion by 2008, Ford faces many obstacles. Eliminating employees will only serve to reduce costs, but what the company needs most is revenues from selling cars.
Swaying to consumer demand, Ford plans to redesign its automobiles. Revisions include new hybrid automobiles and cars marketed specifically towards women.
I think its amazing how the complacency the large automakers have had with the market place. Trouble has been brewing for a while since the introduction of Japanese and European companies, which offer stylish, reliable, and efficient cars. Once thinking that their automobiles will be bought regardless, the three largest automakers are finally shedding the mentality of the 1970’s to invest in new technologies, styling, and ideas.
Hopefully they will not look back
posted by Kyle at 2:20 PM
0 Comments:
Post a Comment
<< Home